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For more than two decades, the FTC has been bringing enforcement actions for violations of national consumer protection laws due to companies’ poor security practices. These poor practices have included failure to encrypt sensitive data, storing credentials in source code, failing to test for common vulnerabilities, and failure to use multi-factor authentication, among others. To remedy these practices, the orders the FTC has obtained in these...

Today, the FTC announced four winners of the Voice Cloning Challenge, which was launched to address the present and emerging harms of artificial intelligence, or “AI”-enabled voice cloning technologies. The FTC received submissions from a wide range of individuals, teams, and organizations. The winners are outlined in the press release and on the Challenge website. The agency called for ideas that can be implemented during at least one of the...

Is the person who contacted your employee really from the IRS or Social Security Administration? And what about those calls and texts to consumers claiming to be from your company? The FTC’s new Trade Regulation Rule on Impersonation of Government and Businesses takes effect today and a just-released Data Spotlight underscores the Rule’s critical importance to consumers and businesses.

Scams that impersonate well-known businesses and government agencies are consistently among the top frauds reported to the FTC’s Consumer Sentinel Network. [1] In 2023, data from the FTC alone show more than 330,000 reports of business impersonation scams and nearly 160,000 reports of government impersonation scams. [2] That amounts to nearly half the frauds reported directly to the agency. [3] Combined, reported losses to these impersonation...

The FTC’s Office of Technology (“OT”) was founded in 2023 with the purpose of strengthening and supporting law enforcement investigations and actions, advising and engaging with FTC staff and the Commission on policy and research initiatives, and engaging with the public and relevant experts to understand trends and to advance the Commission’s work. 24 Members of the International Competition Network (ICN) are committed to continuing to...

It is increasingly important to use existing legal and enforcement tools in digital and technology cases and develop and implement new or updated tools and approaches to strengthen investigations and agency missions. Based on the recognition that technology is a critical piece of enforcing the laws in our respective jurisdictions, the following findings were discussed and advanced at the International Competition Network Tech Forum and will...

The FTC’s Tech Summit on AI [1] highlighted three panels that reflect different layers of the AI tech stack – hardware and infrastructure, data and models, and front-end user applications. Today, we publish the first in a three-part series of “Quote Books” summarizing each of the three panels. This first quote book is focused on hardware and infrastructure, including semiconductor chips and cloud computing. The voices of everyday Americans can...

Three recent FTC enforcement actions reflect a heightened focus on pervasive extraction and mishandling of consumers’ sensitive personal data. Proposed Settlements with Avast [1] , X-Mode [2] , and InMarket [3] In mid February, the FTC announced a proposed settlement to resolve allegations that Avast, a security software company, unfairly sold consumers’ granular and re-identifiable browsing information—information that Avast amassed through its...

To turn the old adage on its head, imitation is the insincerest form of falsity. After years of fighting back against scammers who impersonate government agencies and companies, the FTC proposed a Trade Regulation Rule on Impersonation of Government and Businesses. The Rule would allow the FTC to recover consumer redress from impersonators or to seek civil penalties against those who violate the Rule. After a painstaking process of considering...

You may have heard that “data is the new oil”—in other words, data is the critical raw material that drives innovation in tech and business, and like oil, it must be collected at a massive scale and then refined in order to be useful. And there is perhaps no data refinery as large-capacity and as data-hungry as AI. Companies developing AI products, as we have noted , possess a continuous appetite for more and newer data, and they may find that...